Market Insights

May 25, 2016 • Posted in Market Insights

Week of May 23, 2016

 

  • WTI and Brent prices hit recent highs this week over concerns with a  drop in Canadian production due to the Alberta wildfire and supply disruptions in Nigeria and Latin America.
  • Some of the gains were given back late in the week and some analysts feel that the current rally will end short of $50/bbl due to record inventory gluts in the US and Europe, increased OPEC output, lower refinery margins (due to higher feedstock costs) and reduced rates of stockpiling in China.
  • Strengthening in the US dollar also applied downward price pressure and also increased the chances of a Fed interest rate hike in June.

 

WTI Crude Oil & Brent Crude Oil 05232016

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